The Palaeocene Lockhart Formation, a carbonate-rich succession abundant in Larger Benthic Foraminifera, represents a significant potential hydrocarbon reservoir extending throughout the Kohat, Potwar and Hazara basins of Pakistan. This study examines two stratigraphic sections of the Lockhart Formation in the Hazara Basin—Bagran and Karhaki—providing crucial insights into its biostratigraphy and microfacies analysis. The formation comprises medium- to fine-grained limestone with shale intercalations, exhibiting argillaceous to compacted textures. Biostratigraphic analysis revealed a diverse assemblage of Larger Benthic Foraminifera, with 23 species identified across 9 genera, including Miscellanea miscella, Lockhartia haimei, Lockhartia conditi and Ranikothalia sindensis. These fossils indicate deposition within Shallow Benthic Zone (SBZ) 4 during the Late Thanetian, suggesting a dynamic palaeoenvironment. Seven distinct microfacies types were identified: bioclastic mudstone, mixed bioclastic wackestone, miliolidal bioclastic wackestone, foraminiferal wackestone–packstone, foraminiferal wackestone, foraminiferal packstone and bioclastic foraminiferal packstone. These microfacies indicate varied depositional settings, from shallow subtidal and lagoonal to shallow restricted and open marine environments, spanning inner ramp to distal mid-ramp conditions. This research advances our understanding of Late Thanetian depositional environments within the Lockhart Limestone, with implications for regional sedimentology, palaeogeographic reconstruction and reservoir characterisation.